New Jersey Resources (NJR) AI Stock Analysis

• Market Cap: $4.50B
• Dividend Yield: 4.03%
• Average Volume (3M): 594.74K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.22
• Revenue Growth: 20.30%
• EPS Growth: 63.69%
• Country: US
• Employees: 1,372
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Gas
• EPS (TTM): 1.78
• Shares Outstanding: 100,371,550
• 10 Day Avg. Volume: 596,053
• 30 Day Avg. Volume: 594,741
• PEG Ratio: 0.37
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.53
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 8.23
• Enterprise Value/Ebitda: 2.41
• 1Y Price Target: $50.80
• Price Target Upside: 13.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $53.00 ▲(18.75%Upside)

New Jersey Resources scores well due to strong financial performance and solid valuation metrics. Positive earnings guidance and strategic growth initiatives further bolster its position. However, technical analysis reflects recent stock pressure, and cash flow challenges need addressing. Regulatory uncertainties pose risks but are balanced by NJR's strategic initiatives and growth potential.

Positive Factors

Earnings Growth

The reaffirmation of NJR's long-term growth rate target of 7-9% is a positive indicator for future performance.

Financial Management

NJR's sale of its residential lease business simplifies its portfolio and captures a beneficial one-time gain, indicating strong financial management.

Regulatory Support

Approval of NJNG's expanded SAVEGREEN program indicates regulatory support for NJR's investment in state climate goals.

Negative Factors

Natural Gas Market Volatility

No guidance bump at NJRES despite volatile natural gas markets, which could have been a source of earnings upside.

Project Delays

Delays in NJR's CEV segment projects could hurt sentiment and threaten improved appreciation for NJR’s portfolio model.

New Jersey Resources Business Overview & Revenue Model

Company Description

New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 564,000 residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates commercial and residential solar projects situated in New Jersey, Connecticut, Rhode Island, and New York. The Energy Services segment offers unregulated wholesale energy management services to other energy companies and natural gas producers, as well as maintains and transacts a portfolio of physical assets consisting of natural gas storage and transportation contracts in the United States and Canada. The Storage and Transportation segment invests in natural gas transportation and storage facilities. It provides heating, ventilation, and cooling services; holds commercial real estate properties; and offers solar equipment installation, and plumbing repair and installation services, as well as engages in the water appliance sale, installation, and servicing activities. The company was incorporated in 1981 and is headquartered in Wall, New Jersey.

How the Company Makes Money

New Jersey Resources makes money through several revenue streams. The primary source of revenue is its regulated utility operations, New Jersey Natural Gas, which provides natural gas distribution services to residential, commercial, and industrial customers. Revenue is generated from customer payments for natural gas supply and distribution services. Another significant source of income is NJR's energy services division, which includes wholesale energy services, such as natural gas storage and transportation, and retail energy sales. Additionally, NJR invests in clean energy projects, including solar energy installations, which contribute to its earnings through renewable energy credits and incentives. The company's financial performance is supported by regulatory frameworks, strategic partnerships, and investments in energy infrastructure and sustainability.

New Jersey Resources Financial Statement Overview

Summary

New Jersey Resources demonstrates strong financial performance with impressive profitability and revenue growth, indicating a positive trajectory. The balance sheet reflects a stable financial structure with moderate leverage. However, cash flow challenges, particularly in free cash flow, require attention to ensure sustainable capital management. Overall, the company is well-positioned in the regulated gas industry with substantial growth potential.

Income Statement

New Jersey Resources has shown strong income growth with impressive revenue and net income increases. The TTM Gross Profit Margin is approximately 40.12%, and the Net Profit Margin is 20.03%. Revenue has grown from $1.80 billion to $2.07 billion, indicating a solid growth trajectory. The EBIT and EBITDA margins are healthy at 29.98% and 41.10%, respectively, reflecting operational efficiency.

Balance Sheet

The company's balance sheet reveals robust equity levels, with a Debt-to-Equity ratio of 1.38, suggesting moderate leverage. The Return on Equity (ROE) stands at 16.75%, indicating effective use of equity to generate profits. The Equity Ratio is 34.10%, showing reasonable financial stability. Overall, the company maintains a balanced leverage and equity position.

Cash Flow

Cash flow analysis shows some challenges, with negative free cash flow of -$99 million, though there's a positive operating cash flow of $502.9 million. The operating cash flow to net income ratio is 1.21, indicating solid cash flow generation from operations. However, the negative free cash flow suggests potential issues in managing capital expenditures.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.07B	1.80B	1.96B	2.91B	2.16B	1.95B
	Gross Profit
831.69M	696.47M	610.48M	595.16M	438.04M	370.81M
	EBIT
621.59M	458.10M	407.00M	406.48M	288.35M	228.91M
	EBITDA
851.96M	666.35M	594.06M	565.01M	433.52M	370.36M
	Net Income Common Stockholders
415.16M	289.77M	264.72M	274.92M	201.10M	163.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
83.71M	1.02M	954.00K	1.11M	4.75M	117.01M
	Total Assets
7.27B	6.98B	6.54B	6.26B	5.72B	5.32B
	Total Debt
3.41B	3.52B	3.29B	3.13B	2.76B	2.51B
	Net Debt
3.33B	3.52B	3.29B	3.13B	2.75B	2.40B
	Total Liabilities
4.79B	4.78B	4.55B	4.44B	4.09B	3.67B
	Stockholders Equity
2.48B	2.20B	1.99B	1.82B	1.63B	1.64B
Cash Flow		Free Cash Flow
-99.03M	-143.91M	-61.93M	-274.95M	-233.66M	-256.69M
	Operating Cash Flow
502.88M	427.41M	478.99M	323.48M	390.95M	213.48M
	Investing Cash Flow
-486.27M	-569.07M	-538.63M	-590.61M	-622.12M	-994.02M
	Financing Cash Flow
62.34M	141.76M	59.70M	262.54M	117.78M	895.90M

New Jersey Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NJR, the sentiment is Negative. The current price of 44.63 is below the 20-day moving average (MA) of 45.18, below the 50-day MA of 46.78, and below the 200-day MA of 46.35, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 40.20 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NJR.

New Jersey Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SR	73 Outperform	$4.26B	17.83	7.30%	4.34%	-7.10%	2.54%
NJR	71 Outperform	$4.50B	10.82	17.83%	4.03%	20.30%	63.69%
NWN	71 Outperform	$1.60B	15.77	7.36%	4.93%	3.88%	11.80%
SWX	69 Neutral	$5.22B	22.96	6.49%	3.46%	-10.78%	16.27%
CPK	67 Neutral	$2.79B	22.10	9.04%	2.14%	20.41%	13.64%
OGS	65 Neutral	$4.43B	17.54	8.08%	3.69%	7.73%	2.36%
Sector *	64 Neutral	$8.59B	10.39	4.24%	4.64%	4.07%	-13.04%

New Jersey Resources Corporate Events

New Jersey Resources Engages Investors in June 2025 Meetings

In June 2025, New Jersey Resources Corporation will engage with investors and analysts during meetings in London, Zurich, and New York, sharing insights through a slide presentation. These interactions aim to provide key information about the company’s operations and financial strategies, potentially influencing stakeholder perspectives and market positioning.

The most recent analyst rating on (NJR) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on New Jersey Resources stock, see the NJR Stock Forecast page.

New Jersey Resources Reports Strong Q2 2025 Earnings

On May 5, 2025, New Jersey Resources reported its fiscal 2025 second-quarter results, showing a significant increase in net income to $204.3 million compared to $120.8 million in the same quarter of fiscal 2024. The company raised its fiscal 2025 net financial earnings per share guidance due to strong performance from Energy Services, driven by natural gas price volatility during the winter period, highlighting the strength of its diversified business model.

New Jersey Resources Elects William Yardley to Board

On April 16, 2025, New Jersey Resources announced the election of William T. Yardley to its board of directors, effective July 1, 2025. Yardley, a seasoned leader in the energy sector, brings extensive experience in pipeline infrastructure and regulatory strategy, which is expected to enhance NJR’s strategic direction and strengthen its board. His appointment reflects NJR’s commitment to leveraging industry expertise to drive innovation and growth.